Canceled Project Blackbird Could Have Succeeded Destiny, Insider

One of the big casualties of Microsoft's layoffs in 2025 was Project Blackbird, an action-RPG MMO from The Elder Scrolls Online team at ZeniMax.

Project Blackbird, likened to a blend of Destiny 2 and Cyberpunk 2077, was terminated in mid-2025. Bloomberg's Jason Schreier suggested that it had the potential to surpass Destiny 2, especially given Bungie's reduced focus on the game. Schreier expressed regret over the cancellation, highlighting positive feedback about the game's prospects.

Former The Elder Scrolls Online director Matt Firor hinted at financial motives behind Blackbird's demise, reflecting Microsoft's strategic shift towards profitability. Moon Studios CEO Thomas Mahler criticized Xbox's reliance on established IPs over fostering new creative talent, echoing sentiments about missed opportunities for innovation.